Property prices spring, new listing rise ahead of selling season

Home prices rose through August despite an unseasonably early flow of new homes coming onto the market ahead of the busiest time in the realestate calendar, the spring selling season.

The flow of new homes on the market did not stop prices rising throughout August ahead of the spring selling season officially kicking off.

Conditions in the residential property market proved more robust through winter than is traditional. PropTrack’s monthly Home Price Index revealed an eighth consecutive month of price rises, up 0.28 per cent nat­ionally in August.

The mild increase has culminated in a 3.51 per cent increase since the start of the year, led by Sydney, reclaiming nearly all of last year’s downturn.

It coincides with a 9.4 per cent increase in the number of homeowners and landlords coming to market ahead of the busiest time of the year for real estate, spring, according to figures from national real estate agency Ray White.

PropTrack senior economist Eleanor Creagh said the market was experiencing its longest consecutive monthly growth since the pandemic boom when prices rose for 23 months between May 2020 and March 2022.

She said a lack of choice for buyers was driving the renewed price growth by creating more competition.

“For much of this year, stronger housing demand and a limited flow of new listings hitting the market have offset the impact of interest rate rises.

“In Sydney and Melbourne, the flow of new listings is increasing as seller confidence improves. However, buyer demand still far outstrips supply, putting upward pressure on prices.”

Price gains are being lead out of Sydney, which rose a further 0.47 per cent in August, to a total increase of 6.19 per cent from the bottom of the market in November. Melbourne rose 0.15 per cent in August and is yet to report annual growth (down 0.53 per cent).

Meanwhile, limited choice in the smaller capital cities has led to strong buyer competition and solid selling conditions, pushing prices to new highs in August.

McGrath chief executive John McGrath.

Brisbane rose 0.27 per cent last month, but was eclipsed by growth in Adelaide (up 0.64 per cent) and Perth (up 0.31 per cent).

Last year’s spring proved to be a fizzer after successive interest rate rises caused buyers and sellers to be more cautious about transacting.

Although the overall number of homes on the market is lower than last year, Ray White data analyst Will Clark said it appears spring started early.

“Typically, August and July are quiet months, with the first pick up in listings in September,” Mr Clark said.

 

“This year, it appears as though the spring selling season kicked off early.

“The second half of 2022 saw new listings remain flat and buyers will be encouraged that this is unlikely to be the case this year.”

Property leader John McGrath last week said distressed selling had begun at the lower end of the market, as mortgage holders struggled with repayments after the fastest increase to interest rates in a decade.

More homes coming on the market may help to moderate property price growth in coming months, Ms Creagh said.

“However, with interest rates stabilised and likely near or at their peak, the confidence in the market is likely to sustain, resulting in more of the country returning to positive annual price growth.”